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So you’re thinking of selling?

Here at Johnston Associates South Chartered Accountants for Nelson and Marlborough we love being part of our clients’ business journey. Whatever stage you’re at we enjoy hopping on board and helping you get to where you want to be.

Let’s face it, we’re all in business to make money, and a critical decision for any business owner is deciding at what stage they’re going hand over the reins to maximise investment. Selling a business can be a complex process and whether or not you make a profit will often depend on why you’re selling and your timing. Of course the strength of your business’ activities and framework will play a part in boosting returns.

We’ve been involved in the process of transferring a business for many clients, and today we wanted to share with you our top three tips if you’re thinking of selling.

Speculate to accumulate – If you’re thinking of selling you might have decided to cut back on operating costs, but carefully consider how and where you will lessen your expenditure as you will still need to promote your business without disclosing that it is for sale. This will often require a level of investment. You may need to update your website or spend more time at industry functions, in the lead up to marketing your business.

The devil’s in the detail – If you’ve watched Dragon’s Den you’ll know that those fire breathing entrepreneurs are most impressed with the candidates that know their numbers. It helps to carry out due diligence on your own business prior to selling. If you can view your business through the eyes of a potential purchaser you may identify any likely issues, if you can answer your prospective purchaser’s questions with detailed facts and clear numbers you’ll be more likely to progress to sale.

Gather your team – If you’ve been successful in business, you’ll know how important it is to enlist the help of experts when required. This advisory support shouldn’t be neglected when you’re selling, you need your A-team. The players on your side will likely be your lawyer, possibly a broker, possibly your business banker and definitely your chartered accountant. Don’t forget that once your business is sold, you’ll need to figure out how to handle the profit, we can help there too.

If you’d like to discuss selling your business with our business advisory team get in touch, we’d love to hear from you.